Dexus may offload $300 million of CPA's non-core commercial assets if takeover bid succeeds
More than $300 million worth of non-core commercial property assets within the Commonwealth Property Office Fund could be offloaded if predator Dexus Property Group succeeds with its consortium takeover bid for the fund.
DEXUS and partner Canada Pension Plan Investment Board this week unveiled a revised bid for the Commonwealth Property Office Fund (CPA) valued at $2.8 billion.
In a note to clients, Credit Suisse analysts said they expected moderate dilution to DXS’s (Dexus) overall portfolio quality to be offset by multiple asset sales from both portfolio’s over the next 12 months.
The analyst said that in addition to likely asset sales from the current Dexus portfolio, the "handful of CPA assets" sold could potentially include 46 Colin Street ($44 million, West Perth), Finlay Crisp Centre ($77.5 million, Canberra) and 101/150 George Street ($192.5 million, Parramatta) in Sydney.
The Australian Financial Review reported today that the sell-off of non-core CPA assets could be worth at least $500 million.
If the takeover offer is successful, Dexus's office portfolio will balloon from $5.6 billion to $7.5 billion, making it the biggest landlord of office property in the country.